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V0607-22 23 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

30% reduction applicable to income generated over more than two years if not recurring

A lawyer inquired whether the 30% reduction could be applied to fees from a legal proceeding lasting more than two years. The Directorate General of Taxes (DGT) ruled that this is possible, provided the professional does not receive such income on a regular or habitual basis within their activity.

The question raised

Application of the 30 percent reduction under Article 32.1 of Law 35/2006.

The DGT's ruling

Net income with a generation period exceeding two years may be reduced by 30% if imputed to a single tax period. This reduction is not applicable if the income derives from an economic activity obtained on a regular or habitual basis. Habituality must refer to the professional and their personal income, rather than to the legal practice in the abstract. If the case is an isolated and non-regular occurrence, the reduction is applicable.

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